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East Central Illinois |
Tuesday Feb 5, 2008
Limits "Hindered the Process"
MGEX wheat traders can hit the ball a little harder starting Feb. 12.
Beginning with overnight trade on Sunday, Feb. 11, daily limits will be expanded a dime to 40 cents, said Nancy Krull, MGEX spokesperson.
The exchange sought and gained CFTC permission to expand the limits after seeing contracts hit daily trading limits 122 times in December and January, Krull told DTN. The current limits "hindered the [price discovery] process for our marketplace," Krull said.
Whether the other exchanges will follow the MGEX example isn't clear at this point. Reuters said the Kansas City Board of Trade was exploring the possibility of raising the daily trading limit, but added that a KCBT spokesperson said the exchange "was coordinating" with the Chicago Board of Trade on whether to raise the limit.
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MGEX Expanding Limits....Look out CBOT
